Save Article

Car Demand Boosts Japan Retail Sales

By

Takashi Mochizuki

Updated March 30, 2010 12:01 a.m. ET

TOKYO—Japanese retail sales posted their biggest gain in 13 years in February, data showed Monday, as the government's incentive programs for fuel-efficient cars and flat-screen television sets continued to underpin consumer activity.

But despite the surge in sales, analysts said consumer sentiment remains fragile as deflation and weak employment conditions continue to cloud the outlook for the nation's economy.